B Mirror Report : Despite continued efforts to address the long-standing issue, over 60% of brokerage companies and merchant banks with negative equity have failed to submit action plans to the Bangladesh Securities and Exchange Commission (BSEC).

More than 86 of the 146 affected institutions have not filed board-approved roadmaps seeking regulatory relaxation. The BSEC has warned that firms failing to submit plans by 31 December will be required to maintain full provisioning against negative equity.

So far, the regulator has granted extensions to 60 firms including 21 merchant banks and 39 brokers allowing gradual adjustment and provisioning, in some cases until 2032.

According to BSEC documents, total negative equity stood at Tk10,425 crore as of February 2025, comprising Tk8,005 crore in principal margin loans and Tk2,420 crore in accrued interest. However, firms have provisioned only Tk2,946 crore, leaving a shortfall of Tk5,058 crore.

The problem dates back to the 2010 stock market crash, after which forced selling was largely avoided. Currently, 102 DSE brokerage houses account for 63 percent of total negative equity.

BSEC continues to review extension requests on a case-by-case basis as the issue remains a major structural challenge for the capital market.